PHILLIPS 66 (R66.DE) Stock Fundamental Analysis
FRA:R66 - Deutsche Boerse Ag - US7185461040 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to R66. R66 was compared to 59 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of R66 have multiple concerns. R66 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
R66 had positive earnings in the past year.
In the past year R66 had a positive cash flow from operations.
R66 had positive earnings in 4 of the past 5 years.
In the past 5 years R66 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.57%, R66 is doing worse than 72.41% of the companies in the same industry.
R66 has a worse Return On Equity (6.77%) than 72.41% of its industry peers.
R66's Return On Invested Capital of 0.78% is on the low side compared to the rest of the industry. R66 is outperformed by 82.76% of its industry peers.
R66 had an Average Return On Invested Capital over the past 3 years of 8.53%. This is significantly below the industry average of 15.03%.
The 3 year average ROIC (8.53%) for R66 is well above the current ROIC(0.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.77% | ||
| ROIC | 0.78% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.53%
ROIC(5y)N/A
1.3 Margins
R66 has a Profit Margin of 1.34%. This is amonst the worse of the industry: R66 underperforms 81.03% of its industry peers.
R66's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 0.41%, R66 is not doing good in the industry: 84.48% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of R66 has declined.
R66 has a worse Gross Margin (9.10%) than 86.21% of its industry peers.
In the last couple of years the Gross Margin of R66 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.41% | ||
| PM (TTM) | 1.34% | ||
| GM | 9.1% |
OM growth 3Y44.1%
OM growth 5Y-16.87%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so R66 is destroying value.
Compared to 1 year ago, R66 has less shares outstanding
Compared to 5 years ago, R66 has less shares outstanding
Compared to 1 year ago, R66 has a worse debt to assets ratio.
2.2 Solvency
R66 has an Altman-Z score of 3.17. This indicates that R66 is financially healthy and has little risk of bankruptcy at the moment.
R66 has a better Altman-Z score (3.17) than 75.86% of its industry peers.
R66 has a debt to FCF ratio of 6.35. This is a slightly negative value and a sign of low solvency as R66 would need 6.35 years to pay back of all of its debts.
R66 has a Debt to FCF ratio of 6.35. This is comparable to the rest of the industry: R66 outperforms 51.72% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that R66 is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, R66 is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.08
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.23 indicates that R66 should not have too much problems paying its short term obligations.
R66 has a worse Current ratio (1.23) than 65.52% of its industry peers.
R66 has a Quick Ratio of 1.23. This is a bad value and indicates that R66 is not financially healthy enough and could expect problems in meeting its short term obligations.
R66 has a Quick ratio of 0.88. This is in the lower half of the industry: R66 underperforms 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for R66 have decreased strongly by -75.54% in the last year.
Measured over the past years, R66 shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.44% on average per year.
R66 shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
R66 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.91% yearly.
EPS 1Y (TTM)-75.54%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%-147.37%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.93%
3.2 Future
R66 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.72% yearly.
The Revenue is expected to decrease by -4.36% on average over the next years.
EPS Next Y-16.81%
EPS Next 2Y34.13%
EPS Next 3Y25.82%
EPS Next 5Y20.72%
Revenue Next Year-6.96%
Revenue Next 2Y-3.14%
Revenue Next 3Y-0.62%
Revenue Next 5Y-4.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.45 indicates a quite expensive valuation of R66.
R66's Price/Earnings ratio is a bit more expensive when compared to the industry. R66 is more expensive than 75.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. R66 is around the same levels.
R66 is valuated reasonably with a Price/Forward Earnings ratio of 9.45.
The rest of the industry has a similar Price/Forward Earnings ratio as R66.
R66's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.45 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, R66 is valued more expensive than 82.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of R66 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.27 | ||
| EV/EBITDA | 18.55 |
4.3 Compensation for Growth
R66's earnings are expected to grow with 25.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.13%
EPS Next 3Y25.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.40%, R66 is a good candidate for dividend investing.
R66's Dividend Yield is comparable with the industry average which is at 60.01.
R66's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
The dividend of R66 has a limited annual growth rate of 5.09%.
Dividend Growth(5Y)5.09%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
103.09% of the earnings are spent on dividend by R66. This is not a sustainable payout ratio.
The dividend of R66 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP103.09%
EPS Next 2Y34.13%
EPS Next 3Y25.82%
FRA:R66 (4/28/2025, 7:00:00 PM)
92.16
+1.93 (+2.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.37%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap37.55B
Analysts76.67
Price Target116.52 (26.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend3.99
Dividend Growth(5Y)5.09%
DP103.09%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.51%
Min EPS beat(2)-39.73%
Max EPS beat(2)36.71%
EPS beat(4)3
Avg EPS beat(4)8.59%
Min EPS beat(4)-39.73%
Max EPS beat(4)36.71%
EPS beat(8)5
Avg EPS beat(8)6.94%
EPS beat(12)8
Avg EPS beat(12)8.56%
EPS beat(16)12
Avg EPS beat(16)14.88%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)0.25%
Max Revenue beat(2)4.37%
Revenue beat(4)4
Avg Revenue beat(4)4.32%
Min Revenue beat(4)0.25%
Max Revenue beat(4)8.75%
Revenue beat(8)8
Avg Revenue beat(8)4.73%
Revenue beat(12)11
Avg Revenue beat(12)4.44%
Revenue beat(16)14
Avg Revenue beat(16)5.62%
PT rev (1m)-11.96%
PT rev (3m)-12.73%
EPS NQ rev (1m)-10.89%
EPS NQ rev (3m)-23.9%
EPS NY rev (1m)-24.64%
EPS NY rev (3m)-34.1%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.45 | ||
| Fwd PE | 9.45 | ||
| P/S | 0.31 | ||
| P/FCF | 14.27 | ||
| P/OCF | 9.16 | ||
| P/B | 1.55 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 18.55 |
EPS(TTM)2.93
EY3.18%
EPS(NY)9.75
Fwd EY10.58%
FCF(TTM)6.46
FCFY7.01%
OCF(TTM)10.06
OCFY10.92%
SpS300.52
BVpS59.49
TBVpS53.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.77% | ||
| ROCE | 0.98% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 0.84% | ||
| OM | 0.41% | ||
| PM (TTM) | 1.34% | ||
| GM | 9.1% | ||
| FCFM | 2.15% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.53%
ROIC(5y)N/A
ROICexc(3y)9.24%
ROICexc(5y)N/A
ROICexgc(3y)9.66%
ROICexgc(5y)N/A
ROCE(3y)10.82%
ROCE(5y)N/A
ROICexcg growth 3Y39.36%
ROICexcg growth 5Y-16.24%
ROICexc growth 3Y39.8%
ROICexc growth 5Y-15.48%
OM growth 3Y44.1%
OM growth 5Y-16.87%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
F-Score5
Asset Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.35 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 62.42% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 143.69% | ||
| Profit Quality | 160.35% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.17 |
F-Score5
WACC9.88%
ROIC/WACC0.08
Cap/Depr(3y)111.89%
Cap/Depr(5y)132.17%
Cap/Sales(3y)1.41%
Cap/Sales(5y)2.09%
Profit Quality(3y)84.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.54%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%-147.37%
EPS Next Y-16.81%
EPS Next 2Y34.13%
EPS Next 3Y25.82%
EPS Next 5Y20.72%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.93%
Revenue Next Year-6.96%
Revenue Next 2Y-3.14%
Revenue Next 3Y-0.62%
Revenue Next 5Y-4.36%
EBIT growth 1Y-91.56%
EBIT growth 3Y56.63%
EBIT growth 5Y-11.96%
EBIT Next Year107.49%
EBIT Next 3Y38.71%
EBIT Next 5Y23.06%
FCF growth 1Y-65.87%
FCF growth 3Y-17.53%
FCF growth 5Y20.06%
OCF growth 1Y-57.58%
OCF growth 3Y-11.36%
OCF growth 5Y-2.71%